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Rondot Automotive Essay

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Below is an essay on "Rondot Automotive" from Anti Essays, your source for research papers, essays, and term paper examples.

Case study 5
Members: (Ma,Lei, Qing Lan Wang, Julie Anto, Neha Kulkarni, Narayanan Ravi)
  * Rondot is a wholly owned subsidiary of Rondot Worldwide,a leading global designer and manufacturer of electrical and electronic components.Rondot Automotive operated 85 plants in 25 countries.
  * The purchasing organization at Rondot automotive had a hybrid structure and the Jackson plant’s purchasing department consisted of four people, including two buyers, a planner (Glen) and Terry Gibson.
  * Glen had been approached by an enterprise local supplier called Greven E-coating and they provided samples for each family of housings and cost estimates to Glenn.
  * The technology used in the Greven E-coating is cost effective & uses newer technology.
  * These samples were sent to Rondot’s quality control department for testing and the results seemed encouraging.
  * Current situation:
      * Rondot Automotive was facing considerable global competition and significant pressures from its customers for price reductions.
      * Total sales and employment at the Jackson plant had steadily declined over the past five years.
      * The number of employees at the plant had dropped from 1450 to 600 and plant management was under pressure to lower costs and regain market share.
      * Glenn has the option to do outsourcing on cleaning and painting work to Greven E-Coating.
      * Glenn needs to come up with an ideal recommendation on how to reduce the cost and propose that to Terry Gibson and Dick Taylor.

Basic Issues:
  * Company to take a decision on insourcing or Outsourcing.
  * Higher Costs related to cleaning and painting.
  * Increased global competition and pressure from customers on price reduction.
  * Lack of technology development to compete in the competition.
  * Inexperienced planner for a big decision.
  * Steady decline of total sales for the past five years.
  * Cost benefits analysis on the process.


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"Rondot Automotive". Anti Essays. 18 Jan. 2019


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Rondot Automotive. Anti Essays. Retrieved January 18, 2019, from the World Wide Web: https://www.antiessays.com/free-essays/Rondot-Automotive-362609.html